Month: June 2013

A good way to find winners is to look at stocks that can go up when the market is in a steep decline. I happened to find GME, which broke out of a cup and handle base on above average volume on Thursday.   See this article about the GME advance on Thursday. This stock is probably worth watching to see if the break-out can hold. I do not like to go long, however, when the market indexes are weakening.

The market is getting very over-sold. Three of the 4   oversold indicators I watch are negative.   The put/call ratio is at 1.29, one of the highest readings of bearish sentiment I have ever seen.   The Worden T2108 is at 21%, in an area where the market could bottom. While I expect a bounce soon, another day with the GMI below 3 will cause a Sell signal to be issued.

GMI holds at 6 (of 6) even as the more sensitive GMI-2 weakens to 4. Volatility continues.   We are still in a post-earnings lull.   Growth stocks that have been strong may bounce at end of second quarter during mutual fund window dressing. I am waiting for strength towards the end of June and into earnings release in July. However, with gold and stock index futures down so much this morning, this is the time for me to hold back and wait for the dust to settle. Worden T2108, at 35%, is still in low neutral territory. The futures (from CNN money site)   are below fair value, but are not in a steep decline.

The 11 stocks below came up in my new high and good recent earnings scan and appear in one of my watch lists of stocks mentioned as promising by IBD.